Gov. Greg Abbott signed legislation that will create a state-run gold depository in the Lone Star State – one that will attempt to rival those operated by the U.S. government inside Fort Knox and the Federal Reserve Bank of New York’s vault in lower Manhattan. “The Texas Bullion Depository,” Abbott said in a statement, “will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.”

Soon, Abbott’s office said, the state “will repatriate $1 billion of gold bullion from the Federal Reserve in New York to Texas.” In other words, when it comes preparing for the currency collapse and financial armeggedon, Abbott’s office really seems to think Texas is a whole ‘nother country.

And the new depository will not just be a well-guarded warehouse for that bullion. The law Abbott signed calls for the creation of an electronic payments system that will allow gold, silver, platinum, palladium, and rhodium depositors to write checks against their accounts, making the depository into a bank – one that will create a metal-backed money supply intended to challenge the paper currency issued by the Federal Reserve – or “Yankee dollars” as one of the law’s top supporters calls them.

In case the Fed or Obama wants to confiscate Texas’s gold, nice try Fed and Obama! In keeping with this suspicion of the Fed and Washington, the new law also explicitly declares that no “governmental or quasi-governmental authority other than an authority of [Texas]” will be allowed to confiscate or freeze an account inside the depository. Gold that’s entrusted to Texas will stay in Texas…

The depository, then, will insulate Texans from a just-around-the-corner economic and geopolitical catastrophe brought on by paper money and cauterize the seemingly-still-fresh trauma of Franklin Roosevelt’s 1933 executive order making gold coin hoarding illegal during the Great Depression.

But to the trained ear, there’s an even more aggressively anti-Fed term being invoked in praise of the Texas depository: “repatriation.” Ordinarily it’s a word used to describe the movement of assets or currency from one nation to another…On the website of SchiffGold, the gold brokerage owned by onetime U.S. Senate candidate Peter Schiff…Texas is described “join[ing] the ranks of major global economies that want to bring their gold home from New York.”…

If you were suspicious about Gov. Abbott’s claim that “the [depository] law will repatriate $1 billion of gold bullion from the Federal Reserve in New York to Texas,” you were on to something.

Indeed, Texas has no gold bars in the Federal Reserve’s New York vault. And what the state has is not worth a billion dollars. Instead some 4,200 gold bars bought in 2011 by the University of Texas’s endowment fund…are stored in the basement vault of HSBC’s headquarters at 450 5th Avenue in New York City…

Although most of the political crappola involved in creating this fiasco relied heavily on Texas’ ever-present threat to secede from the United States – and take their non-existent gold mountain with them – in truth there are pages of silliness written in libertarian dialect privatizing every possible function of this new and independent Fort Knox. The obvious aim of this boondoggle is the selling of gold to nutballs who believe that owning gold is the only salvation against Armageddon.

Thanks to my favorite Recovering Republican

  1. Mr Diesel says:

    The only salvation against Armageddon is lead, jacketed or not.

    Texas has the 12th largest economy in the world and I’m guessing they want to capitalize on that fact.

    • Ah_Yea says:

      First comment, right on the money!

      Texas has a huge economy, and why shouldn’t the state want more control over it’s economic resources?
      See this PDF for a brief overview of Texas Vs. Europe economies.

      Not to mention the war between this White House and Texas. 50+ lawsuits and counting!

    • Ah_Yea says:

      Just more liberal garbage. Where was the outcry when other countries asked for their gold back? And remember, the economy of Texas is much larger than most countries.

      “Over the last few years, countries including, but not limited to, Germany, the Netherlands, France, Belgium, Austria, Poland, Ecuador, Finland, Switzerland, Venezuela, and Romania have formally requested repatriation of their gold”

      Of course, this is an Eideard post, so don’t expect critical thought.

      • bobbo, in point of fact says:

        Oh No—what “out cry”? Eideard is pointing out the utter “Don’t Mess w Texas” BS that is on display here.

        Describe for me please how Texas with private gold on deposit will fare better than anywhere else in the USA should some calamity raising the issue arise.

        You can’t do it because the issue is all BS.

        Ahem: when Armageddon occurs, give me a water filter.

        • dade0 says:

          Ahem: when Armageddon occurs, give me a water filter.

          Give me?

          • bobbo, in point of fact says:

            HA!!!—I thought of that right after posting.

            I have a commercial filter and a flat piece of plastic in my camping gear, and yet it fits as entirely idiomatic.

            Hang in there….you’ll catch me one of these days.

        • Dwight E. Howell says:

          What’s the national debt? Texas is actually has the ability to come up with a currency to keep their economy going after CA , NY and DC do a total crash and burn.

  2. John Ullman says:

    A United States without Texas would be a great improvement, perhaps with Austin remaining an independent mini country like Monaco. The current administration feels this way, too, and is currently negotiating to divest us of Texas. The main sticking point is the huge amount of money Mexico is asking to take it back.

      • bobbo, in point of fact says:

        With zero personal income tax, and low business taxes and many business give aways, Texas is NOT creating many jobs. Rather, it is cheating middle class by having jobs in other states move to Texas with a NET tax revenue loss to society. Its a downward spiral of unsupportable social short sightedness…. all while Texas has become a welfare client of the Fed Gubment, ie: taking more in Fed programs than it pays in taxes.

        Texas…………….is a fraud.

        • NewFormatSux says:

          It’s not society that loses tax revenue, it is the government. Of course Texas has a budget surplus, and unlike Barack Obama, Rick Perry improved the credit rating that he inherited from George W Bush.

          • bobbo, in point of fact says:

            NFS==Venn Diagram the two: you’ll find gubment a circle entirely within society.

            Silly Hooman.

        • Phil A. Minion says:

          I am extremely impressed with your knowledge of economy and matters of finance, bobbo. So tell me, why is it that you live in a trailer?

          • bobbo, in point of fact says:

            After working 6-7 days a week for 30 years and finding myself unemployed I decided to try “not working” as my context. Then when divorce and the stock market crashed cutting my portfolio by 75%, I continued with my choice but had to match my expenses to my zero income. Hence the trailer. An inheritance from my Mother who died leaving it to me. Its a standard trailer, double, but is continguous to a County Park with a (dry) creek about 50 feet from the back door.

            Travel has taught me that the dividing line for life is: food, shelter, clothing. Hungry or Fed is far more important than what you are eating, housing of any type is all we “need” anything beyond the six sides of a cardboard box really being excess. Clothing…well, there is winter and good will although I’m still wearing what I bought 30 years ago.

            So….why are we living?

            To work?

            Did that.

            With 25 years of thinking about my Great American Novel….I’m sure the outline for the first draft will be GREAT!!!!!

            Ha, ha………..I do crack myself up so.

            Thanks for the interest………..and whatever else follows! (Oh!!)

          • Average Random Joe says:

            Because he is a bitter, self absorbed, anti-social hermit.

          • bobbo, in point of fact says:

            Not bitter, not self absorbed.

            I am anti….. just about everything.

            …………tell me what you are “for.”

            HH, ICMSU.

          • Phil A. Minion says:

            Bobbo – years ago just after the stock market crash I decided to pull all my money out of Wall Street (it was only about 30K) , concentrate on paying off all debt. And investing in physical gold and silver. This was and still is considered looney “survivalist” type behavior.

            Today I have a house that’s paid for, gold and silver in reserve, as well as cash hidden, and zero debt.

            I might not be as knowledgeable about economy as yourself….but

            “I’m just glad I don’t live in a trailer.”

            -Jimmy Buffett

          • bobbo, in point of fact says:

            You were serious about financial acumen? The dismal science??? Ok…Damn YOU for giving me a stretch goal.

            A lot of my pleasure in the double wide is that it reminds me of Mom. No other place would do that. Its location is superb being on a creek that flowed until this year. Turkeys, squirrels, skunks, racoons, hawks, little kiddies.

            Vacationing near Hamlets Castle in Denmark, I bargained too hard for a Hotel Room and found myself at Midnight with no place to stay except under the stars on a cold drizzling night. I YEARNED for a cardboard box. Shelter meeting the necessity as opposed to ostentatious display or tax manipulation or bubble building.

            Same with transportation…. walking back from Napoleon’s mistresses Chateau….any wheels at all better than walking.

            …..and so it goes. The Double Wide gives me more privacy than any apartment/condo, and I have all that anyone needs: the functional triangle connecting tv/computer to the kitchen to the bathroom.

            Once your basics are met, all else is a bit suspect in my mind. Best example: watches. $2 as accurate at 50K.

            To each his own. Downsizing allowed me to retire before 50 and spend my time in contemplation. One does spend a lot of money “going” to work. I no longer dream about the next board meeting, I dream about….. well, … a few things.

            ………But Hate is good too. Hate the Trailer and you don’t live in one? That is a good thing. I have much the same feelings regarding gated communities.

            To each their own.

  3. I H8 O says:

    What people don’t seem to realize (including most Texan’s) is that the State of Texas is an independent “Republic” which has been conscripted into the “United” States of America. And because of that fact the Texas legislature must regularly vote to remain to be part of the USA. Clearly, the Texas legislature does this as a “rubber stamp” act, but they DO IT almost every year!

    So if Texas wants to stop rubber stamping their allegiance to the USA and finally become it’s own country, this “national banking” they’re talking about would seem to be a first logical move. We’ll just not consider how a national bank is illegal under the USA’s Constitution nor how most Texans would curiously defend the USA Constitution to the death. But what I want to know is if Texas does become a new country, will any of Texas’s past USA presidents have their legislation retroactively revoked? For example, will the Federal Government revoke all laws signed by George “W” Bush — or LBJ?!

    … If so, then could we please do the same for HAWAII?!!!

  4. McCullough says:

    Because as we all know the US Dollar backed by 17 Trillion dollars in debt, is priceless. Or is it worthless?

  5. The Bogeyman says:

    Silly Texan believes the fed still has remaining gold reserves.

  6. Mr Diesel says:

    They will secede right after the shit stain we have in The Whitehouse announces his run for a third term.

  7. NewFormatSux says:

    New York is whiter than Texas. But Eideard needs to maintain his delusions.

  8. hoochee ma ma says:

    just replace rose with gold… it fits texas

  9. SKINET says:

    I bought gold when the metal was cheap and the people were dear. Now the people are cheap and the metal is dear. Life is cheaper down there and the only thing growing is the pool of cheap labor.

    • Mr Diesel says:

      Cheap? Yeah right. I wish may wages were growing as fast as the minimum wage. If all the burger flippers get their way I’ll be making minimum wage……

  10. orchidcup says:

    Texas will be a state of Mexico in a few years.

    The majority of Texas residents will be Hispanic as soon as 2036 (if migration into Texas from 2000 to 2010 continues at the same pace going forward) or as late as 2049 (if population changes are due solely to in-state births and deaths).

    Consequently, we can ascertain that Texas could be voted back into Mexico within a decade or more, so the only thing that remains to be done is the signing of the papers.

    Now the white folks in Texas will know what it feels like to be a minority.


Bad Behavior has blocked 11917 access attempts in the last 7 days.